Decision No. 343-A-1990

June 22, 1990

File No. M4205-F19-2

Docket No. 90167

Bradley Air Services Limited carrying on business as First Air (hereinafter the applicant) has applied to the National Transportation Agency to operate the service set out in the title. The application was received on February 22, 1990.

Under Licence No. 890008, the applicant is authorized to operate a Class 2 Regular Specific Point domestic service using fixed wing aircraft in Groups B, C, D, E, F and G, serving the points Iqaluit, Hall Beach, Cape Dorset, Coral Harbour, Clyde River, Pangnirtung, Broughton Island, Pond Inlet, Nanisivik, Igloolik, Pelly Bay, Spence Bay, Gjoa Haven, Cambridge Bay, Yellowknife, Rankin Inlet, Baker Lake, Eskimo Point and Resolute Bay, Northwest Territories; Goose Bay and Stephenville, Newfoundland; Montreal and Val d'Or, Quebec; Ottawa, Ontario; and Churchill and Winnipeg, Manitoba.

Notice of the application was published on March 16, 1990 in the newspaper of the area concerned and posted at the post office of Radisson. Copies of the notice were sent to selected air carriers and to others believed to be interested. Interventions opposing the granting of the application were filed with the Agency by Canadian Airlines International Ltd. carrying on business under the firm name and style of either international Canadian Airlines International or Canadi*n¹ (hereinafter CAIL) and Air Creebec Inc. (hereinafter Air Creebec). The applicant replied to the interventions.

The pleadings form part of the public files and may be consulted in the Agency's offices by anyone who so desires. In addition, copies will be provided by the Secretary of the Agency on request.

The Agency has considered the application, the material in support thereof and the interventions referred to.

The Agency notes that Air Creebec indicates in its intervention that the applicant's proposal to provide service between Montreal, La Grande (LG-2) and Kuujjuaq using Group G Boeing 727 aircraft would not lead to a significant decrease or instability in the level of air service provided. Air Creebec's concerns are confined to the possibility that the addition of the points La Grande (LG-2) and Kuujjuaq to the applicant's Licence No. 890008 would permit the applicant to operate fixed wing aircraft in Groups C, D and E between Montreal, Val d'Or and La Grande (LG-2). According to Air Creebec, the operation of aircraft in these Groups between these three points would result in a substantial reduction or elimination of Air Creebec's unit toll service between Montreal, Val d'Or, La Grande (LG-2) and Kuujjuarapik. Air Creebec submits that, rather than amending the licence as requested by the applicant, a separate licence should be issued to the applicant authorizing it to operate a Class 2 Regular Specific Point domestic service between Ottawa, Montreal, La Grande (LG-2) and Kuujjuaq using fixed wing aircraft in Group G. The applicant indicates in its reply to Air Creebec's intervention that it would not oppose the inclusion of a condition on its Licence No. 890008 which would prohibit it from providing service between Montreal, Val d'Or and La Grande (LG-2) using Groups C, D and E aircraft. The Agency, however, is of the view that Air Creebec does not substantiate that the provision of a unit toll service by the applicant between Montreal, Val d'Or and La Grande (LG-2) using any of the aircraft Groups that the applicant is authorized to operate under Licence No. 890008 would have a negative impact on the overall level of air service provided. Therefore the Agency does not deem it appropriate in the public interest to include such a condition on the applicant's licence.

In its intervention, CAIL submits that there is insufficient air service demand to warrant additional competition in the provision of air services serving La Grande (LG-2) and Kuujjuaq and that the proposed service would destabilize its air service network in Northern Quebec and the Eastern Arctic. The Agency notes, however, that CAIL does not submit specific evidence to substantiate that the proposed service would have a significant adverse effect on the overall level of domestic service provided to, from or within the designated area.

The Agency also notes that there is no indication of concern from independent parties, such as members of the general public, community representatives or users of the air services, that the operation of the proposed service would have a negative impact on the level of domestic service provided to, from or within the designated area.

Accordingly, the Agency is satisfied that the issuance of a licence for the proposed service would not lead to a significant decrease or instability in the level of domestic service provided between points or to or from any point in the designated area.

To obtain a new document of licence, bearing Licence No. 890008, which will authorize the applicant to also serve the points La Grande (LG-2) and Kuujjuaq, Quebec, the applicant is hereby provided with one year from the date of this Decision, to file documents that establish to the satisfaction of the Agency that it meets the requirements set out in paragraph 72(2)(a) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.). Failure by the applicant to establish to the satisfaction of the Agency within the aforementioned time frame that it meets these requirements will result in that part of this Decision, for which requirements are not met, being rescinded without further notice effective one year from the date of this Decision.